BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Sponsored
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Sponsored
Home Altcoins

Circle Rebalances USDC Reserves to Mitigate US Default Risk

by Dan K
May 11, 2023 - 9:32 am
in Altcoins
Jeremy Allaire, CEO of Circle, addressing the changes in USDC reserve holdings

Table of Contents

  • Circle Moves to Minimize US Debt Default Risk
  • Adjustments to USDC Reserves Treasury
  • Current Holdings and Debt Limit Concerns
  • Rival Stablecoin Issuer Tether
  • USDC Market Share Decline and Tether’s Dominance

Circle Moves to Minimize US Debt Default Risk

Stablecoin issuer Circle has reportedly adjusted its reserves treasury in an effort to reduce the risks of United States debt defaults.

Adjustments to USDC Reserves Treasury

According to a May 10 Politico newsletter, Circle CEO Jeremy Allaire said that the firm has adjusted the mix of reserves backing its USD Coin by switching to short-dated U.S. Treasurys to avoid getting caught up in a potential U.S. debt default.

He said that the firm no longer holds Treasuries maturing beyond early June because it wants to avoid debt exposure.

“We don’t want to carry exposure through a potential breach of the ability of the U.S. government to pay its debts.”

Current Holdings and Debt Limit Concerns

The Blackrock-managed Circle Reserve Fund shows that current holdings mature no later than May 31.

Earlier this week, Treasury Secretary Janet Yellen said the government will be forced into making “decisions” if Congress doesn’t raise the federal debt limit.

U.S. President Joe Biden and Republicans are conflicted over raising the $31.4 trillion borrowing limit. The $24 trillion Treasury market and global financial system would be rattled if the country defaulted on its debts.

Rival Stablecoin Issuer Tether

Rival stablecoin issuer Tether claims a majority of its reserves are invested in Treasury bills with an average maturity of fewer than 90 days.

The firm stated that it has been “working to take steps to reduce its reliance on pure bank deposits as a source of liquidity,” according to a May 10 quarterly assurance report.

USDC Market Share Decline and Tether’s Dominance

USDC supply has been shrinking over the past year, falling by 46% since its all-time high of $56 billion in June 2022. This has caused its market share to fall to 23% with a circulation of $30 billion. The beneficiary has been rival Tether, whose market dominance has increased to 62% with a circulation of $82 billion USDT.

In April, Allaire blamed America’s war on crypto and the banking crisis for USDC’s dwindling market capitalization.

Tags: CircleStablecoinTetherTreasuryUSDC
Dan K

Dan K

Dan K, the chief editor, is a visionary wordsmith, shaping narratives with finesse. His discerning eye for detail creates literary masterpieces.

Related Posts

Elon Musk with the Dogecoin logo in the background, symbolizing his alleged involvement in Dogecoin market manipulation and insider trading.

Elon Musk Faces Amended Class-Action Lawsuit Alleging Dogecoin Insider Trading

June 1, 2023

Elon Musk faces an amended class-action lawsuit from Dogecoin investors accusing him of insider trading and price manipulation...

A portrait of Dr. John Forsyth, ONFO Coin Co-founder, found dead in the United States

Tragic End: ONFO Coin CEO Dr. John Forsyth Found Dead Under Mysterious Circumstances

June 1, 2023

A tragic discovery - ONFO Coin's CEO Dr. John Forsyth is found dead a week after his unexplained...

Graph showing the 14.4% increase in INJ price following Injective Protocol's Avalon upgrade

Injective Protocol’s Avalon Upgrade Sparks INJ Token Price Rally

May 29, 2023

Avalon upgrade from Injective Protocol has driven the price of INJ up by 14.4%. The upgrade advances the...

Elon Musk with the Dogecoin logo in the background, symbolizing his alleged involvement in Dogecoin market manipulation and insider trading.

Elon Musk’s Dogecoin Caution: Dogefather Advises Not to Bet Big on Crypto

May 24, 2023

Elon Musk loves DOGE for its humor and dogs but warns crypto enthusiasts not to go all in...

Press Releases

pulse x

Amsterdam Gets with the Dutch Blockchain Days the Biggest Event of the Benelux in the Field of Blockchain, Crypto Currencies, NFTs and Other Web3 Developments

May 8, 2023

Discover the future of blockchain, crypto, NFTs, and Web3 at Dutch Blockchain Days, the largest event in Benelux.

pulse x

Korea Blockchain Week 2023 Set to Push the Boundaries after Record-Breaking 2022 Event

May 8, 2023

Korea Blockchain Week 2023 returns after a highly successful 2022 event, featuring leading experts and the latest trends in blockchain...

pulse x

Istanbul Will Be Hosting Eurasia’s Largest Blockchain Event Once again on May 8–11, 2023

May 8, 2023

Join Eurasia's largest blockchain event, the Blockchain Economy Istanbul Summit, May 8-11, 2023, and discover the future of financial technology.

pulse x

Hong Kong Web3 Festival 2023, Hong Kong’s Largest-Ever Premier Digital Asset Event, is here. A Platform for Worldwide Leaders to Discuss the Latest Web3 and Blockchain Trends

May 8, 2023

Join Hong Kong Web3 Festival 2023, the largest-ever digital asset event, co-hosted by Wanxiang Blockchain Labs and HashKey Group.

View All
BTC-Pulse LogoTransparent

© 2023 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2023 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise